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Gold Price Forecast – Gold markets explode to upside on Friday

By:
Christopher Lewis
Updated: Apr 26, 2019, 17:40 UTC

Gold markets initially fell during the Friday session, but then exploded to the upside, reaching towards the bottom of the neck line from the previous head and shoulders pattern. At this point, it’s going to be very difficult to continue the upward momentum, but the fact that we shot as high as we did on Friday should be paid attention to.

Gold daily chart, April 29, 2019

Gold markets initially pulled back during the trading session on Friday, but then shot straight up in the air to reach towards the bottom of the neck line from the previous head and shoulders pattern. That of course is worth paying attention to, because it could very well end up being significant resistance. This level is going to be very interesting, and therefore you are probably better served to sit on the sidelines until we get some type of clarity as to where we go next. The $1292 level looks to be very crucial, as it is not only coinciding with the trend line, but we also have the 50 day EMA just above there.

Gold Prices Video 29.04.19

Ultimately this is a chart that is going to be crucial coming into the next week, and I think you will probably have to look at very short-term price action to get a grip on what to do next. However, once we get that daily impulsive candle, it should clear up a lot of questions. It is because of this that I am stepping to the sidelines in the short term but recognize the role that the greenback will play. If the US dollar strengthens drastically, that could really start to put a beating on the gold market again. However, the exact opposite is true as well so keep that in mind also. This is a market that you should be trading against the US Dollar Index.

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About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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